Categories: Sports

Spain risks 30% tax on World Cup prize

Spain could lose up to 30 per cent of the prize money earned from winning the 2026 FIFA World Cup to United States federal taxes, according to reports.

The European champions defeated Argentina 1-0 in the final at the New York New Jersey Stadium on July 19 to claim the title and a winners’ prize of $50 million from FIFA’s record tournament prize pool.

Under U.S. tax laws, income earned by non-resident foreign athletes from activities carried out in the country is generally subject to a 30 per cent federal withholding tax unless covered by a tax treaty or exemption.

According to reports, unlike previous World Cup hosts such as South Africa, Brazil, Russia and Qatar, the United States did not grant blanket tax exemptions to players, coaches and team staff. While FIFA and national football federations reportedly secured certain tax exemptions, individual members of the participating teams remain subject to applicable federal and state taxes.

Commenting on the issue, U.S. Republican Congressman Tim Burchett criticised the potential tax burden, describing it as excessive.

“I think it’s a rip-off,” Burchett said, adding that although American athletes also pay taxes, the policy could discourage international competitors from participating in events hosted by the United States.

Social media commentator William Copus, popularly known as The Feedski, also claimed that players could face additional state income taxes depending on where they played. He noted that New Jersey, which hosted the final, imposes income tax rates of up to 10.75 per cent, while California charges as much as 13.3 per cent, potentially increasing the total tax burden for some players.

However, these claims could not be independently verified.

Democratic Congressman Jonathan Jackson also criticised the reported tax structure, describing it as unfair and arguing that corporations should bear a larger share of the tax burden rather than workers.

Republican Congressman Burgess Owens similarly described the potential 30 per cent tax as excessive but commended the United States for successfully hosting the expanded 48-team FIFA World Cup.

LUKMAN ABDULMALIK

Recent Posts

State police will protect youth businesses, boost security — City Boy Movement

The proposed establishment of state police could help protect young Nigerians’ businesses, improve security and…

6 hours ago

Okoya’s estranged son still gets four flats, medical aid — Family

The family of billionaire businessman Razaq Okoya has denied claims that his estranged son, Fatai,…

7 hours ago

24 states approve constitutional amendment for state police

The Presidential Working Group on the National Policing Bill says 24 State Houses of Assembly…

8 hours ago

Niger woman arraigned for cutting husband’s manhood

A 28-year-old woman, Safiya Tukur, has been charged to court after allegedly inflicting a deep…

9 hours ago

Bayern Munich coach Kompany hospitalised after collapsing during training

Bayern Munich coach Vincent Kompany has been hospitalised after collapsing during training. Bayern confirmed the…

9 hours ago

NAFDAC uncovers fake alcohol supply hub in Lagos

The National Agency for Food and Drug Administration and Control (NAFDAC) has uncovered more than…

9 hours ago

This website uses cookies.